Community Banking – Seneca-Cayuga Bancorp To Become a Publicly Traded Stock
Seneca-Cayuga Bancorp, the holding company for Generations Bank, and the boards of directors of The Seneca Falls Savings Bank, MHC, the mutual holding company of Generations Bank expect to implement a second step stock conversion in which the MHC. The deal would sell its majority ownership in Seneca-Cayuga in a “second-step” stock offering.
Seneca-Cayuga is currently in the mutual holding company structure. It will reorganize to a fully public stock holding company.
The Seneca-Cayuga Bancorp Deal
As part of the conversion and reorganization, the Bank would become a wholly-owned subsidiary of a new holding company. Shares of common stock of the Company held by persons other than the MHC (whose shares would be canceled) would be converted into shares of common stock of the new holding company pursuant to an exchange ratio generally intended to preserve the percentage ownership interests.
The second step transaction will be subject to the approval of the Company’s stockholders (including approval by a majority of the shares held by persons other than the MHC), the voting members of the MHC (depositors of the Bank), the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency.
The company was founded in 1870 and is headquartered in Seneca Falls, New York.
In addition, to normal banking services, they also offer investment and insurance products to their customers. The bank operates in the Northern Finger Lakes region in the western portion of New York State between the cities of Rochester and Syracuse, New York. Seneca Falls is located six miles south of Interstate 90, the major east-west highway that runs through the state of New York. Our market now extends from Medina and Albion, New York, in the west to Auburn, New York, in the east.
Shares of Seneca are already trading below book value. The second step conversion should increase tangible book value dramatically as the shares owned by the MHC are converted to cash and added to the balance sheet. The prospectus should be filed shortly and we will be able to determine the structure of the offer and the amount of increase in the value of Seneca shares is increased by the stock sale.
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